HIGHLIGHTS

• MARKET TREND—Mixed: CZ: down $.0175; SF: down $.0325; WZ: steady; KWZ: up $.0050 

·       MACRO.  Tax reform remains in the cross-hairs, market awaits Senate testimony from the new fed chair nominee.  SocGen to close up to 15% of branches, embracing digitial banking. ASIA—Slightly lower: Nikkei, -0.04%; Shanghai, +0.34%; Hang Seng, -0.02. EUROPE: Higher: DAX, +0.35%; FTSE, +0.56%; CAC, +0.55%.  WALL STREET—Upward, onward—DOW futures, +29; S&P, +2.25; NAS, +2.50.  EXTERNALS: $ Index: +.170 @ 92.995; Gold: -$1.50 @ $1,293; Jan crude: -$0.54 @ $57.57/bl. 

• T-storm Weather: Below-normal rainfall affects corn, soybean, and / or sunflower areas from central / eastern Argentina northward through South Brazil over the next 10 to 14 days.  Elsewhere, occasional thunderstorms affect the western third of Argentina's growing belt (most notably including Cordoba), and cool fronts trigger heavy thunderstorms in central and northern areas of Brazil, including the key areas of Goias, Mato Grosso, and Minas Gerais
• CZ, down $.0175 @ $3.37; CH, down $.02 @ $3.4925.  The funds began the week selling 3 K    
• SF, down $.0325 @ $9.9275; SH, down $.0350 @ $10.0425.  Funds: Bot 3 SB, 3 SBM, Sld 2 SBO.  Board Crush: $.98, +$.01; LY, $.73 
• WZ, steady @ $4.0950; WH, up $.0025 @ $4.2850.  Fund liquidation estimated at 6 K     

CORN/SORGHUM

·       U.S. corn harvest is 95% v. 98% for both last year and the 5-year avg.

·       T-storm Weather: While central and eastern corn areas of Argentina are forecast to see below-normal rain over the next 10 to 14 days, near to slightly above normal amounts (1.00”-2.00”) affect the western third of crops

·       Consultant: Brazil corn production estimate for 2017/18 is unchanged this week at 88.0 MMT vs. 98.5 MMT last year

·       ATI Research: Updated ending stocks estimate for 17/18 U.S. corn 2.491 bbu versus November USDA est. of 2.487

·       U.S. sorghum harvest progress is 95% vs. 96% for both last year and the 5-year avg.

SOYBEANS/WHEAT

·       ATI Research: Updated ending stocks estimate for 17/18 U.S. soybean 0.537 bbu versus November USDA est. of 0.425

·       T-storm Weather: Numerous cool fronts dissipate across soybeans in central & northern areas of Brazil over next 10 days, triggering frequent thunderstorms & producing above-normal rain of 2.25”-4.50”, maintaining moist soil profiles

·       Consultant: Brazil soybean production est. for 2017/18 is steady this week at 107.0 MMT vs. 114.1 MMT last year

·       U.S. winter wheat crop condition ratings peg Good/Excellent at 50% vs. 52% last week and v. 58% last year

·       T-storm Weather: A series of systems produce heavy rain from South Australia  and points east over Thu.-Sat., resulting in in rainfall of 0.75” to 1.50” that will slow remaining wheat harvesting 

ENERGY

·       Lower: CLF18, -$0.54 @ $57.57; EBF, -$0.60 @ $63.24; EBF-QCLF, -$0.06; RBF, -.0192;NGF, +.053; HOF, -.0107

·       On Monday, cash ethanol markets were mixed compared to last Wednesday (last report): Chicago was quoted at $1.37975, down $0.005; Basis to Chicago—New York, +10 ¾; Gulf, +8; Dallas, +4 ½; Tampa, +18 ¼; and LA, +16 ½

·       On Mon., ethanol RINs firmed.: 2016’s up ½ at 88 ¾-89 ¾; 2017’s added ½ to 89 ½-90 ½; & 2018’s up ½ to 89 ½-90 ½

·       The Dec RBOB/Dec ethanol spread open the week $.0117 narrower at+$.40530/gallon 

  LIVESTOCK/POULTRY             &nb​sp;                       

• Choice boxed beef values declined $1.42 on Monday to $209.57, but is still up $3.39 vs. last week 
• 5-Area Weekly Weighted Average Steer price dn $0.38 v. last week at $118.97/cwt, but is $7.92 higher v. last year

·       USDA mandatory pork carcass cutout value eased 33-cents on Mon. to $81.34, and is 44-cents lower vs. a week ago 

• Current nearby board hog crush value is $39.50/cwt vs. last week’s $37.34, last month’s $40.42 & last year’s $26.76

Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather